Fiscal Impact Study
Fiscal Impact of New Housing Study Highlights A study was conducted by Impact Data Source in Austin, Texas to determine the fiscal impact of new housing on local governments. This study is unique because it examined what revenue local governments gained from five new housing developments located in St. Louis, St. Charles and Jefferson Counties as well as what local governments had to spend to support the new developments. The study was commissioned by the Urban Choice Coalition in St. Louis, Missouri. The Urban Choice Coalition is made up of volunteer leaders in business, labor and government who value quality economic growth throughout the St. Louis region.

The study found:

Residential growth often serves as a profit center for local governments.

All 30 taxing districts affected by the five new home communities studied made a net profit from the residential growth.

The homes produced a total net profit of more than $13.9 million each year, on average, for the local governments in which the new home communities were built.

The average net profit per home for local governments was more than $3,000.

The following total net profit for all taxing districts for each community is as follows:

Community

Location

Total Net Profit to Local Government

Villages of Dardenne

St. Charles County

$2,744,844

Winghaven

St. Charles County

$6,443,837

Winter Valley

Jefferson County

$1,750,578

Chesterfield Farms

West St. Louis County

$2,134,906

Summit Ridge

South St. Louis County

$913,427

New home communities improve the quality of life for all residents by adding bonding capacity for local governments that was not included in the numbers above. Added bonding capacity allows local governments, often without raising taxes, to finance major community improvements like new schools, parks, fire stations and libraries. New residents then pay their share in retiring the long-term debt for those improvements.